The State of Default

by Anthony DiMaio

Not all news is written to inform; some news is just written to scare you and attract attention and eyeballs. A recent report stated that a housing price crash was in the future for three states. They referred to the report published by ATTOM on September 12th, 2024. Not only did they get the states wrong, but they also got the information completely wrong.

When it comes to the industry, don’t take anyone’s word for it; go to the source.

The August 2024 US foreclosure market report indicated that foreclosure filings fell by 5.3% from the prior month and are down 11% from 2023. Meanwhile, a report from a reputable news source is crying about how the housing price crash is looming in the future. All of this is due, they claim, to 50 counties that are at risk in a meltdown. Where they getting this word meltdown? And 50 counties in the country? Did you know that in the 50 states there are 3,143 counties and equivalents? So that doesn’t even equal 2%. But of course, this under 2% is going to trigger a meltdown? Not!

So let me just present some of the facts: according to the report, foreclosure activity has remained relatively steady in recent months, with foreclosure starts and completed foreclosures declining in August 2024.

■ As of the time of the report and the numbers for August, this preceded the recent reduction in the fed’s interest rate by a half a point. Many believe that the reduction in the fed rate is going to precipitate an uptick in buyers coming to market.

■ In the metropolitan statistical areas with populations exceeding 200,000, these are the numbers that were published by ATTOM:
Lakeland, FL (one in every 1,245 housing units with a foreclosure filing)
Chico, CA (one in every 1,526 housing units)
Columbia, SC (one in every 1,796 housing units)
Bakersfield, CA (one in every 1,972 housing units)
Las Vegas, NV (one in every 2,016 housing units)

■ According to the ATTOM report, lenders initiated foreclosure processes on 20,747 US properties in August 2024, which is down 5.1% from July and down 9.4% from 2023.

■ Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in August 2024 included: New York, NY (1,332 foreclosure starts); Chicago, IL (1,069 foreclosure starts); Miami, FL (743 foreclosure starts); Los Angeles, CA (675 foreclosure starts); and Houston, TX (507 foreclosure starts).

■ Lenders repossessed 2,889 US properties through completed foreclosures (REOs) in August 2024, down 12.0% from July and down 13.9% from 2023.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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